A 60-year-old Batavia woman who worked as a bookkeeper for two West Chicago construction companies is facing felony charges after prosecutors say she siphoned off more than $1.5 million from her employers over several years. Tammy Dunagan was taken into custody by the West Chicago Police Department on September 10 on a warrant issued by Circuit Judge Robert Miller, and she was released the same day on her own recognizance.
Dunagan is charged with two Class X felony counts of theft exceeding $1 million and one felony count of theft exceeding $500,000, according to the Kane County Chronicle. Authorities allege the theft scheme dates back to 2016, and DuPage County State's Attorney Robert Berlin said Dunagan took advantage of the trust placed in her by her employers. According to the same account, Berlin said white-collar crimes can be difficult to detect because the people accused of committing them often know a business's financial procedures and protocols inside and out.
Court records described in reporting by the Daily Herald show that Dunagan served as bookkeeper for Lorusso Cement Contractors starting in 2012. The paper reports she allegedly wrote 148 fraudulent checks totaling over $1 million to her husband, logging them internally as legitimate vendor payments. Lorusso Cement Contractors and Dunagan's husband were sued civilly in March 2024, and a DuPage County court ordered the couple to repay the money in August 2024, the Daily Herald reports.
A Second Company, A Second Judgment
Swallow Construction Corporation filed its own civil lawsuit against Dunagan in 2024, alleging she wrote checks directly to herself totaling $843,657. That case resulted in a March 2025 DuPage County court judgment ordering her to repay the funds, per the same Daily Herald report. Between the two civil judgments, courts had already ordered Dunagan to repay more than $1.8 million in misappropriated funds before the criminal indictment was ever filed.
According to the indictment, Dunagan allegedly stole more than $1 million while employed at Lorusso Cement Contractors, with one incident dated to March 24, 2016, and more than $500,000 while employed at Swallow Construction Corporation, with an incident dated to December 16, 2021. Lorusso Cement Contractors, headquartered at 1090 Carolina Drive in West Chicago, is a closely held company incorporated in 1979, according to Illinois Courts records. Swallow Construction Corporation is listed at 490 Topsoil Drive in West Chicago, per the City of St. Charles.
How the Case Reached Criminal Court
Lorusso Cement Contractors first uncovered the financial discrepancies and reported Dunagan to the West Chicago Police Department in 2023. West Chicago police investigated the matter for more than two years, with cooperation from the DuPage County State's Attorney's Office. West Chicago Police Chief Colin Fleury thanked his officers for their investigative work over the past two years, saying complex financial crimes require immense time, diligence and expertise to unravel. Fleury added that the case demonstrates the strength of the partnership between his department and Berlin's office.
Berlin, in turn, thanked West Chicago police and Assistant State's Attorney Ken Tatarelis for their work investigating the case. DuPage County State's Attorney's Office records show Dunagan resides on the 1300 block of Chillem Drive in Batavia. The charges were formally approved by the DuPage County State's Attorney's Office following the police investigation.
Why Dunagan Walked Free the Same Day She Was Arrested
Despite facing Class X felony charges, Dunagan was released on her own recognizance the day of her arrest. The Daily Herald reported that the offenses were not detainable.
The statutory exposure Dunagan faces is steep. Under 720 ILCS 5/16-1(b)(6.3), theft of property exceeding $1,000,000 is a Class X felony carrying a prison term of 6 to 30 years, according to legal resources published by Guilamo Law. A separate provision, 720 ILCS 5/16-1(b)(6.2), makes theft of property valued between $500,000 and $1,000,000 a Class 1 felony carrying 4 to 15 years. Prosecutors say Dunagan could face up to 30 years in prison if convicted on the top counts.
Broader Toll on Local Employers
Berlin also spoke more broadly about the ripple effects of insider theft schemes on local businesses, noting that they frequently cause severe financial distress for employers that can translate into reduced employee wages, lost hours, or lost jobs entirely. Fleury echoed that sentiment in describing the demands of the investigation, framing the case as an example of how much time and forensic work is required to untangle years of falsified bookkeeping.
Circuit Judge Brian Telander is expected to preside over Dunagan's case in DuPage County. Her next court appearance is scheduled for October 15, 2026, with the criminal prosecution still pending after civil courts ordered her to repay both companies.
